India: Sponge iron prices decline d-o-d on cautious buying - 27 Oct

Sponge iron prices witnessed a steady decline today, dropping by INR 100-500/tonne (t) across locations amid selling pressure and weakening market sentiments.

Due to the dull demand for semi-finished and finished materials, purchasers remained cautious, which resulted in modest buying activity despite this large price reduction. However, trade volumes increased in central India due to offers falling drastically.

PDRI prices were assessed at around INR 23,000-26,200/t at close of trading today, while CDRI prices were at INR 25,800-30,800/t.

Approximately 12,700 t of sponge iron transactions were recorded in the country today compared to 5,700 t on 26 November.

Rationale -

Prices have been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative